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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 6 8 15 T L October 12, 1971 J Auction of $2 Billion of New Treasury Notes To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The T reasury announced today that it will auction $2 billion o f new notes on F riday, O ctober 15. The details o f this offering, as announced by the Treasury, are printed below. The Treasury today invited tenders for $2.0 billion, or thereabouts, of 5 % % 3-year 4-month Treasury Notes of Series E-1975. The notes to be sold at auction on Friday, October 15, 1971, under competitive and noncompetitive bidding will be issued on October 22, 1971, and will mature February 15, 1975. The notes will be issued in registered and bearer form in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. Tenders for the notes will be received up to 1:30 p.m., Eastern Daylight Saving time, Friday, October 15, 1971, at any Federal Reserve Bank or Branch and at the Office of the Treasurer of the United States, Washington, D. C. 20220; provided, however, that noncompetitive tenders will be considered timely received if they are mailed to any such agency under a postmark no later than October 14. Each tender must be in the amount of $1,000 or a multiple thereof, and must state the price offered, if it is a competitive tender, or the term ‘ ‘ noncompetitive, ’ ’ if it is a noncompetitive tender. The price on competi tive tenders must be expressed on the basis of 100, with two decimals, e.g., 100.00. Tenders at a price less than 99.26 will not be accepted. Fractions may not be used. The notation ‘ ‘ TENDER FOR TREASU RY N O TE S” should be printed at the bottom of the envelope in which the tender is submitted. Public announcement will be made of the amount and price range of accepted tenders. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly re serves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations noncom petitive tenders for $200,000 or less will be accepted in full at the average price (in two decimals) of accepted competitive tenders. This price may be 100.00, or more or less than 100.00. Commercial banks, which for this purpose are de fined as banks accepting demand deposits, may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from commercial and other banks for their own account, Federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, pub lic pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make primary markets in Govern ment securities and report daily to the Federal Re serve Bank of New York their positions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of notes applied for. Payment for accepted tenders must be completed on or before Friday, October 22, 1971, at the Federal Reserve Bank or Branch or at the Office of the Treas urer of the United States in cash or other funds imme diately available to the Treasury by that date. Any qualified depositary will be permitted to make settle ment by credit in its Treasury tax and loan account for notes allotted to it for itself and its customers. Where full payment is not completed in funds avail able by the payment date, the allotment will be can celed and the deposit with the tender up to 5 percent of the amount of notes allotted will be subject to for feiture to the United States. Nonbank investors should understand that their checks will constitute payment only if they are fully and finally collected by the payment date, Friday, October 22, 1971. Checks not so collected will subject the investor’s deposit to forfeiture as set forth in the preceding paragraph. A check payable other than at a Federal Reserve Bank received on the payment date will not constitute immediately available funds on that date. Accordingly, in order that a check will constitute immediately available funds to the Treas ury by the payment date, it should be submitted suffi ciently in advance to assure completion of its col lection by Friday, October 22, 1971. Checks should be drawn to the order of the office to which the tender is submitted. I f a check for the full amount of the payment is submitted with the subscription, it should be, in the case o f tenders at a competitive price, equal to the total purchase price of the notes bid for, or, in the case of noncompetitive tenders, equal to the full face amount of the notes bid for. Bidders on a noncompetitive basis who submit checks for the face amount of the notes bid for will be (1) required to pay an additional amount if the purchase price is more than 100, or (2) paid the difference if the purchase price is less than 100. Commercial banks are prohibited from making un secured loans, or loans collateralized in whole or in part by the notes bid for, to cover the deposits re quired to be paid when tenders are entered, and they will be required to make the usual certification to that effect. Other lenders are requested to refrain from making such loans. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of the notes bid for under this offering at a specific rate or price, until after 1 :30 p.m., Eastern Daylight Saving time, Friday, October 15, 1971. Interest will be payable on February 15, and August 15,1972, and thereafter on February 15 and August 15. The terms o f this offering are set forth in T reasury Departm ent Circular No. 10-71, Public Debt Series, a cop y o f which is printed on the follow ing pages. This Bank will receive tenders tip to 1:30 p.m., Eastern D aylight Saving time, F riday, O ctober 15, 1971, at the Securities D epart ment o f its H ead Office and at its B uffalo Branch. Please use the enclosed tender form s to submit tenders, and return them in the enclosed envelope marked “ Tender fo r T reasury N otes.” Tenders not requiring a deposit m ay be submitted by telegraph, subject to written confirm ation; no tenders m ay be submitted by telephone. Settlement fo r accepted tenders m ay be made in cash or other im m ediately available funds, except that any qualified depositary m ay make settlement by credit in its T reasury T ax and L oan A ccount fo r notes allotted to it fo r itself and its customers. A lfred H ayes, President. FORM NA IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Friday, October 15, 1971. T E N D E R F O R 5 % P E R C E N T TREASURY NOTES O F SERIES E-1975 Dated October 22, 1971 Due February 15,1975 Dated at F e d e r a l R eser ve B a n k o f N ew Y o r k , Fiscal Agent of the United States, N ew York, N. Y. 10045 1971 Pursuant to the provisions of Treasury Department Circular No. 10-71, Public Debt Series, dated October 12, 1971, the undersigned hereby offers to purchase United States of America 5% percent Treasury Notes of Series E-1975 in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below. COMPETITIVE TENDER Do not fill in both Competitive and Noncompetitive tenders on one form NONCOMPETITIVE TENDER $ ......................................................... (maturity value), or any lesser amount that may be awarded. (Not to exceed $200,000 for one bidder through all sources) Price: at the average price of accepted competitive bids. ........................per 100 ( minimum of 99.26). $ ........................................................... (maturity value) (Price must be expressed with not more than two decimal places, for example, 100.00) Subject to allotment, please issue, deliver, and accept payment for the notes as indicated below (if registered notes are desired, please also complete schedule on reverse side): Pieces Denomination $ 1,000 5,000 10,000 Maturity value □ 1. Deliver over the counter to the undersigned Payment will be made as follows: □ By charge to our account on your books □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for ac count o f member bank only)** □ By cash or check in immediately available funds on delivery □ 4. Hold as collateral for Treas ury Tax and Loan Account* □ □ 5. Special instructions: By credit in Treasury Tax and Loan Account (Please complete Advice of Deposit on reverse side) 100,000 1,000,000 Totals (N o will be accepted ) a The undersigned certifies that the allotted notes will be owned solely by the undersigned. W e hereby agree not to buy or sell, or to make any agreements with respect to the purchase or sale or other disposition of any notes of this issue at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving time, Friday, October 15,1971. ( If a commercial bank is subscribing for its own account or for account of customers, the following certifications are made a part of this tender.) W e H e r e r y C e r t i f y that we have received tenders from our customers in the amounts set opposite the customers’ names on the list which is made a part of this tender; that there has been paid to us by each such customer as required by the official offering circular, not subject to withdrawal until after allotment, not less than 5 percent of the amount bid for; that we have not made unsecured loans, or loans collateralized in whole or in part by the notes bid for, to supply the amounts of such payments to any of such customers; that we have no beneficial interest in the tenders of such customers; and that none of our customers has any beneficial interest in the amount bid for our own account. W e F u r t h e r C e r t i f y that tenders received by us, if any, from other commercial banks for their own account and for the account of their customers have been entered with us under the same conditions, agree ments, and certifications as set forth in this form. (Name of subscriber — please print Insert this tender in special envelope marked “Tender for Treasury Notes” or type) (Address — please print or type) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) ( Banks submitting tenders for customer account must indicate names on reverse side hereof) INSTRUCTIONS: 1. value). No tender for less than $1,000 will be considered and each tender must be for an even multiple of $1,000 (maturity 2. Others than commercial banks will not be permitted to submit tenders except for their own account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and method of payment. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation author ized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ^ ............................................................ a copartnership, by ................................. ’ ......................................... . a member of the firm.” 4. Tenders will be received without deposit from banking institutions for their own account, Federally insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds international organizations in which the United States holds membership foreign central banks and foreign States, deilers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their nositions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment o f 5 percent of the face amount of notes applied for. All checks must be drawn to the order of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 5 If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. 5% Percent Treasury Notes of Series E-1975 Desired in Registered Form (I f space is insufficient in schedule below, attach separate listing) Name in which notes shall be registered, taxpayer identifying number (Social Security Account Number or Employer Identification Number), and post-office address for interest checks and other mail. ( Indicate under appropriate denominations, number of notes desired.) Amount ( Please print or typewrite) $1,000 $5,000 $10,000 $100,000 $1,000,000 Name .......................................................................... Ident. N o.................................................................... Address ...................................................................... N a m e .......................................................................... Ident. N o.................................................................... Address ...................................................................... N a m e .......................................................................... Ident. N o.................................................................... Address ...................................................................... (I f registered notes are not to be sent to the registered owner, give mailing information below .) Mail registered notes t o ............................................................................................................ (For use of commercial bank subscribers only) List of Customers Included in this Subscription (I f space is insufficient in schedule below, attach separate listing) Name of ultimate purchaser Amount subscribed Name of ultimate purchaser Amount subscribed Advice of Deposit in Treasury Tax and Loan Account To F e d e r a l R eser ve B a n k o f N e w Y o r k , Fiscal Agent of the United States. W e will deposit on October 22, 1971 to your credit in the Treasury Tax and Loan Account on our books, to be held subject to withdrawal on demand, an amount equal to the purchase price of the notes allotted to us on our tender for 5% percent Treasury Notes of Series E-1975. (Name of Depositary) By ................................................................................................................................... (Authorized signature(s) required) Address .......................................................................................................................... (City and State) UNITED STATES OF AMERICA 57s PERCENT TREASURY NOTES OF SERIES E-1975 Dated and bearing interest from October 22, 1971 DEPARTMENT CIRCULAR Public Debt Series — No. 10-71 Due February 15, 1975 D E P A R T M E N T OF T H E T R E A S U R Y , Office of the Secretary, Washington, October 12, 1971. I. OFFERING OF NOTES 1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act, as amended, invites tenders at a price not less than 99.26 percent of their face value for $2,000,000,000, or thereabouts, of notes of the United States, designated 5% per cent Treasury Notes of Series E-1975. Tenders will be received up to 1:30 p.m., Eastern Daylight Saving time, Friday, October 15, 1971. The notes will be issued under competitive and noncompetitive bidding, as set forth in Section III hereof. II. DESCRIPTION OF NOTES 1. The notes will be dated October 22, 1971, and will bear interest from that date at the rate of 57/g percent per annum, payable on a semiannual basis on February 15 and August 15, 1972, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1975, and will not be subject to call for redemption prior to maturity. 2. The income derived from the notes is subject to all taxes imposed under the Internal Revenue Code of 1954. The notes are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 3. The notes will be acceptable to secure deposits of public moneys. They will not be acceptable in pay ment of taxes. 4. Bearer notes with interest coupons attached, and notes registered as to principal and interest, will be issued in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. Provision will be made for the interchange of notes of different denominations and of coupon and registered notes, and for the trans fer of registered notes, under rules and regulations prescribed by the Secretary of the Treasury. 5. The notes will be subject to the general regula tions of the Department of the Treasury, now or here after prescribed, governing United States notes. III. TENDERS AND ALLOTMENTS 1. Tenders will be received at Federal Reserve Banks and Branches and at the Office of the Treasurer of the United States, Washington, D. C. 20220, up to the closing hour, 1 :30 p.m., Eastern Daylight Saving time, Friday, October 15, 1971. Each tender must state the face amount of notes bid for, which must be $1,000 or a multiple thereof, and the price offered, except that in the case of noncompetitive tenders the term “ noncompetitive” should be used in lieu of a price. In the case of competitive tenders, the price must be expressed on the basis of 100, with two deci mals, e.g., 100.00. Tenders at a price less than 99.26 will not be accepted. Fractions may not be used. Non competitive tenders from any one bidder may not ex ceed $200,000. It is urged that tenders be made on the printed forms and forwarded in the special envelopes marked “ Tender for Treasury Notes” , which will be supplied by Federal Reserve Banks on application therefor. 2. Commercial banks, which for this purpose are defined as banks accepting demand deposits, may sub mit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than commercial banks will not be permitted to submit tenders except for their own account. Tend ers will be received without deposit from banking institutions for their own account, Federally-insured savings and loan associations, States, political subdivi sions or instrumentalities thereof, public pension and retirement and other public funds, international or ganizations in which the United States holds member ship, foreign central banks and foreign States, dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of notes applied for. 3. Immediately after the closing hour tenders wTill be opened, following which public announcement will be made by the Department of the Treasury of the amount and price range of accepted bids. Those sub mitting tenders will be advised of the acceptance or rejection thereof. In considering the acceptance of tenders, the highest prices offered will be accepted in full down to the amount required, and if the same price appears in two or more tenders, and it is neces sary to accept only a part of the amount offered at snch price, the amount accepted at such price will be prorated in accordance with the respective amounts applied for. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, non competitive tenders for $200,000 or less without staled price from any one bidder will be accepted in full at the average price1 (in two decimals) of accepted com petitive tenders. 4. All bidders are required to agree not to pur chase or to sell, or to make any agreements with re spect to the purchase or sale or other disposition of any notes of this issue at a specific rate or price, until after 1:30 p.m., Eastern Daylight Saving time, Fri day, October 15, 1971. 5. Commercial banks in submitting tenders will be required to certify that they have no beneficial interest in any of the tenders they enter for the account of their customers, and that their customers have no beneficial interest in the banks’ tenders for their own account. IV . PAYM ENT 1. Settlement for accepted tenders in accordance with the bids must be made or completed on or before October 22, 1971, at the Federal Reserve Bank or Branch or at the Office of the Treasurer of the United States, Washington, D. C. 20220, in cash or other funds immediately available by that date. Payment i Average price may be at, or more or less than 100.00. will not be deemed to have been completed where reg istered notes are requested if the appropriate identi fying number as required on tax returns and other documents submitted to the Internal Revenue Service (an individual’s social security number or an em ployer identification number) is not furnished. In every case where full payment is not completed, the payment with the tender up to 5 percent of the amount of notes allotted shall, upon declaration made by the Secretary of the Treasury in his discretion, be forfeited to the United States. Any qualified deposi tary will be permitted to make settlement by credit in its Treasury Tax and Loan Account for notes allot ted to it for itself and its customers. V. GENERAL PROVISIONS 1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive tenders, to make such allotments as may be prescribed by the Secretary of the Treasury, to issue such notices as may be necessary, to receive payment for and make delivery of notes on full-paid tenders allotted, and they may issue interim receipts pending delivery of the definitive notes. 2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offer ing, which will be communicated promptly to the Federal Reserve Banks. CHARLS E. WALKER, Acting Secretary of the Treasury.
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